Domo (NASDAQ:DOMO) and Zeta Global (NYSE:ZETA) Financial Analysis

Domo (NASDAQ:DOMO) and Zeta Global (NYSE:ZETA) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings for Domo and Zeta Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Domo	0	4	1	0	2.20
Zeta Global	0	3	11	1	2.87

Domo currently has a consensus target price of $9.60, indicating a potential upside of 2.78%. Zeta Global has a consensus target price of $38.00, indicating a potential upside of 89.81%. Given Zeta Global’s stronger consensus rating and higher possible upside, analysts clearly believe Zeta Global is more favorable than Domo.

Volatility & Risk

Domo has a beta of 2.43, indicating that its share price is 143% more volatile than the S&P 500. Comparatively, Zeta Global has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares Domo and Zeta Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Domo	$318.99 million	1.13	-$75.57 million	($2.16)	-4.32
Zeta Global	$728.72 million	6.52	-$187.48 million	($0.70)	-28.60

Domo has higher earnings, but lower revenue than Zeta Global. Zeta Global is trading at a lower price-to-earnings ratio than Domo, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Domo and Zeta Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Domo	-25.32%	N/A	-38.46%
Zeta Global	-13.35%	-45.22%	-18.84%

Insider & Institutional Ownership

76.6% of Domo shares are owned by institutional investors. Comparatively, 75.8% of Zeta Global shares are owned by institutional investors. 14.0% of Domo shares are owned by company insiders. Comparatively, 25.5% of Zeta Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Zeta Global beats Domo on 10 of the 15 factors compared between the two stocks.

About Domo

Domo, Inc., together with its subsidiaries, operates a cloud-based business intelligence platform in North America, Western Europe, Canada, Australia, and Japan. Its platform digitally connects from the chief executive officer to the frontline employee with the various people, data, and systems in an organization, as well as giving them access to real-time data and insights, and allowing them to manage business via various browsers and visualization engines accessible across laptops, TV screens, monitors, tablets, and smartphones. The company was formerly known as Domo Technologies, Inc. and changed its name to Domo, Inc. in December 2011. Domo, Inc. was incorporated in 2010 and is headquartered in American Fork, Utah.

About Zeta Global

Zeta Global Holdings Corp. operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally. The company’s Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing; and Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent. It also offers various types of product suites, such as agile intelligence suite, which synthesizes Zeta’s data and data generated by its customers to uncover consumer insights that are translated into marketing programs; and CDP, which helps in consolidating multiple databases and internal and external data feeds and organize data based on needs and performance metrics. Zeta Global Holdings Corp. was incorporated in 2007 and is headquartered in New York, New York.